Form 1099-K applies to individuals who earn money through gig work or sell goods online. Third-party settlement organizations (TPSOs)—including platforms such as Amazon, eBay, PayPal, and Venmo - must send copies of the form to both the IRS and taxpayers, detailing the total payments received for goods and services.

Return to the Pre-2021 Standard

Before 2021, TPSOs were required to issue a Form 1099-K only if a seller received more than $20,000 and conducted at least 200 transactions during the year.

The 2021 American Rescue Plan Act lowered that threshold to $600, triggering widespread criticism from taxpayers and digital-payment platforms who warned the rule would swamp casual sellers with unnecessary paperwork.

The IRS initially attempted to phase in the lower limit—proposing $5,000 for 2024, $2,500 for 2025, and $600 from 2026 onward—but the One Big Beautiful Bill Act, signed by President Donald Trump on July 4, permanently repealed those reductions.
As a result, TPSOs are again only required to issue Form 1099-K if both of the following are true:

The gross payments to a payee exceed $20,000, and

The number of transactions exceeds 200.

The IRS noted that some states maintain lower thresholds that remain in effect locally.

Income Still Taxable, With or Without a Form 1099-K

The IRS emphasized that the reporting threshold affects only who receives the form, not what is taxable.
"All income, no matter the amount, is taxable unless the tax law says it isn't—even if you don't get a Form 1099-K," the agency said. That includes cash, property, or services received in exchange for goods or labor.